Stockholders' Equity

6 Months Ended

Oct. 28, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

10. Stockholders' Equity

Stock Options

A summary of the combined activity under our stock option plans and agreements is as follows (in millions, except for the exercise price and term):

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at April 29, 2011		24.5		$	26.62
Options granted		2.0			51.71
Options exercised		(1.8	)		22.86
Options forfeitures and cancellations		(0.3	)		31.44
Outstanding at October 28, 2011		24.4		$	28.92		4.10	$	349.3
Options vested and expected to vest as of October 28, 2011		23.4		$	28.43		4.03	$	342.8
Exercisable at October 28, 2011		14.9		$	24.79		3.31	$	255.2

The aggregate intrinsic value of stock options represents the pre-tax difference between the exercise price of stock options and the market price of our stock on that day for all in-the-money options. Additional information related to our stock options is summarized below (in millions, except per share information):

	Three Months Ended				Six Months Ended
	October 28, 2011		October 29, 2010		October 28, 2011		October 29, 2010
Weighted-average fair value per share granted	$	13.77	$	15.21	$	16.96	$	13.70
Weighted-average fair value per share of options assumed in acquisition		N/A		N/A		N/A	$	21.15
Intrinsic value of options exercised	$	6.8	$	104.1	$	50.6	$	214.6
Proceeds received from the exercise of stock options	$	7.7	$	97.3	$	42.7	$	224.9
Fair value of options vested	$	20.3	$	26.5	$	38.7	$	54.5

There was $93.2 million of total unrecognized compensation expense as of October 28, 2011 related to options. The unrecognized compensation expense will be amortized on a straight-line basis over a weighted-average remaining period of 2.3 years.

The following table summarizes activity related to our restricted stock units (RSUs) (in millions, except for the fair value):

	Numbers of Shares			Weighted- Average Grant Date Fair Value
Outstanding at April 29, 2011		10.1		$	35.79
RSUs granted		4.9			49.85
RSUs vested		(1.7	)		24.15
RSUs forfeitures and cancellations		(0.4	)		38.99
Outstanding at October 28, 2011		12.9		$	42.50

RSUs are converted into common stock upon vesting. Upon the vesting of RSUs, we primarily use the net share settlement approach, where a portion of the shares are withheld and retired as settlement of statutory employee withholding taxes and decreases the shares issued to the employee by a corresponding value. The number and value of the shares netted for employee taxes are summarized in the table below (in millions):

	Three Months Ended				Six Months Ended
	October 28, 2011		October 29, 2010		October 28, 2011		October 29, 2010
Shares withheld for taxes		0.1		0.0		0.6		0.5
Fair value of shares withheld and retired	$	2.5	$	1.1	$	27.8	$	19.6

As of October 28, 2011, there was $366.7 million of total unrecognized compensation expense related to RSUs. The unrecognized compensation expense will be amortized on a straight-line basis over a weighted-average remaining vesting period of 2.8 years.

Employee Stock Purchase Plan — Under the Employee Stock Purchase Plan (ESPP), employees are entitled to purchase shares of our common stock at a 15% discount from the quoted market price of our common stock at certain specified dates over a two-year period. Additional information related to our purchase rights issued under the ESPP is provided below (in millions, except per share information):

	Six Months Ended
	October 28, 2011		October 29, 2010
Weighted-average fair value per right granted	$	15.88	$	11.79
Shares issued under the ESPP		1.1		2.8
Weighted-average price of shares issued	$	39.17	$	11.08

There were no ESPP shares issued during the three months ended October 28, 2011 and October 29, 2010.

Stock-Based Compensation Expense

Stock-based compensation expense included in the condensed consolidated statements of operations for the three and six months ended October 28, 2011 and October 29, 2010, respectively, is as follows (in millions):

	Three Months Ended				Six Months Ended
	October 28, 2011		October 29, 2010		October 28, 2011		October 29, 2010
Cost of product revenues	$	1.4	$	0.8	$	2.5	$	1.7
Cost of service revenues		4.2		3.1		8.1		7.0
Sales and marketing		30.4		17.3		59.0		37.9
Research and development		18.2		9.2		34.2		20.3
General and administrative		8.8		7.3		17.3		15.1
Total stock-based compensation expense	$	63.0	$	37.7	$	121.1	$	82.0

The following table summarizes stock-based compensation associated with each type of award (in millions):

	Three Months Ended				Six Months Ended
	October 28, 2011		October 29, 2010		October 28, 2011		October 29, 2010
Employee stock options	$	14.7	$	13.0	$	29.2	$	25.9
RSUs and restricted stock awards		38.9		18.0		73.3		37.8
ESPP		9.4		6.7		18.6		18.3
Total stock-based compensation expense	$	63.0	$	37.7	$	121.1	$	82.0

Total income tax benefits associated with employee stock transactions and recognized in stockholders' equity were as follows (in millions):

	Six Months Ended
	October 28, 2011		October 29, 2010
Income tax benefits associated with employee stock transactions	$	79.1	$	49.8

Valuation Assumptions

The fair value of each award is estimated on the date of grant using the Black-Scholes option pricing model, assuming no expected dividends and the following weighted-average assumptions:

	Stock Options
	Three Months Ended						Six Months Ended
	October 28, 2011			October 29, 2010			October 28, 2011			October 29, 2010
Expected term in years		4.8			4.8			4.8			4.8
Risk-free interest rate		0.97	%		1.40	%		1.55	%		1.95	%
Volatility		41	%		37	%		36	%		37	%

	ESPP
	Six Months Ended
	October 28, 2011			October 29, 2010
Expected term in years		1.2			1.2
Risk-free interest rate		0.25	%		0.46	%
Volatility		35	%		39	%

No new employee purchase rights were granted under the ESPP during the three months ended October 28, 2011 and October 29, 2010.

Stock Repurchase Program

During the six months ended October 28, 2011, 14.4 million shares of our common stock were repurchased as described below. Since the May 13, 2003 inception of our stock repurchase program through October 28, 2011, we repurchased a total of 118.7 million shares of our common stock at an average price of $29.70 per share, for an aggregate purchase price of $3.5 billion. As of October 28, 2011, our Board of Directors had authorized the repurchase of up to $4.0 billion of common stock under this stock repurchase program, and $0.5 billion remains available under these authorizations. The stock repurchase program may be suspended or discontinued at any time.

Accelerated Share Repurchase Agreements

On July 8, 2011, we entered into a collared accelerated share repurchase agreement (ASR) with Bank of America, N.A, under which we prepaid $200.0 million to purchase shares of our common stock. The aggregate number of shares ultimately purchased was determined based on the volume weighted-average share price of our common stock over a specified period of time. The contract was settled in August 2011. The total number of shares repurchased and retired under this ASR was 4.1 million shares at a weighted-average price of $48.30.

On August 19, 2011, we entered into a new ASR with Wells Fargo Bank, National Association (Wells Fargo), under which we prepaid $400.0 million to purchase shares of our common stock. The aggregate number of shares ultimately purchased was determined based on the volume weighted-average share price of our common stock over a specified period of time, subject to certain provisions that establish a minimum and maximum number of shares that may be repurchased. On August 25, 2011, Wells Fargo delivered 10.3 million minimum shares, which were retired immediately. The contract was settled on November 17, 2011, and we received an additional 0.2 million shares at this time. The total number of shares repurchased and retired under this ASR was 10.5 million shares at a weighted-average price of $38.08.

The value of the contracts was allocated to the cost of the shares repurchased and to the value of the ASR forward contracts as follows for the six months ended October 28, 2011 (in millions):

	Shares of Common Stock			Additional Paid-in Capital			Retained Earnings			Total Repurchase Activity
Repurchase and retirement of common stock		(14.4	)	$	(123.7	)	$	(467.1	)	$	(590.8	)
Value of ASR forward contracts					(9.2	)					(9.2	)
Total cash payment		(14.4	)	$	(132.9	)	$	(467.1	)	$	(600.0	)

Comprehensive Income (Loss)

The components of accumulated other comprehensive income, net of related immaterial tax effects, were as follows (in millions):

	October 28, 2011			April 29, 2011
Accumulated translation adjustments	$	8.5		$	11.6
Accumulated unrealized gain (loss) on available-for-sale investments		(2.0	)		3.4
Accumulated unrealized gain (loss) on derivatives qualifying as cash flow hedges		0.5			(2.2	)
Total accumulated other comprehensive income	$	7.0		$	12.8

The components of comprehensive income, net of related immaterial tax effects, were as follows (in millions):

	Three Months Ended						Six Months Ended
	October 28, 2011			October 29, 2010			October 28, 2011			October 29, 2010
Net income	$	165.6		$	175.4		$	305.1		$	326.1
Change in currency translation adjustments		(2.1	)		3.7			(3.1	)		4.2
Change in unrealized gain on available-for-sale investments		(6.2	)		4.3			(5.4	)		6.4
Change in unrealized gain (loss) on derivatives qualifying as cash flow hedges		0.1			(1.9	)		2.7			(2.4	)
Comprehensive income	$	157.4		$	181.5		$	299.3		$	334.3